How will the GST reform affect your business?

Hopes are high that a change to the GST will help level the playing field for Australian business in the online market.

The treasurer announced that GST payments will now apply for products and services under $1,000 purchased online from overseas. The change will take effect on July 7 2017.

State representatives also unanimously agreed to the idea of removing any existing GST liability thresholds on other goods and services. The decision was made at a Council on Federal Financial Relations Tax Reform Workshop in Canberra.

In Australia, only e-commerce businesses with a turnover of $75,000 per year will be required to register and charge the tax. The responsibility for charging, collecting and remitting GST on goods from the digital market will fall on the overseas supplier.

According to the Kate Carnell, CEO of the Australian Chamber of Commerce, the GST reform will bring benefits to domestic suppliers through the equal application of this tax.

"The decision by the treasurers is a common-sense one that will help local retailers who are doing it tough," she stated

"We applaud them for their action and hope that it will herald more substantial tax reform on issues including the GST rate and base, and stamp duty."

Carnell also believes that, due to the rise in e-commerce, these changes are timely and necessary for the modern economy. As the nature of modern business becomes more global, import costing software can help business shift their outlook moving forward.

GST restructuring is just one aspect of the ongoing tax reforms, aimed to restructure the system to encourage growth among small businesses. According to the federal treasurer, tax structure will play a major role in economic growth in the next few years as the fiscal environment evolves. The key goals are to encourage innovation and increase opportunities for business, as well as fostering a stronger overall economy.